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Sensex snaps two-day losing streak, Nifty ends shy of 9K; IT stocks under pressure

Earlier, domestic equity bourses opened lower, tracking losses in Asian counterparts amid dismal US economic data and poor start of quarterly earnings' season. However, markets turned bullish on the trend reversal in SGX Nifty and a higher opening in European indices.

Rupa Burman Roy | April 16, 2020 | Updated 18:13 IST
Sensex snaps two-day losing streak, Nifty ends shy of 9K; IT stocks under pressure
With the start of March quarterly earnings' season, the overseas trend was mixed

Sensex and Nifty snapped two days of losing streak and closed on a bullish note on Thursday, tracking gains in European and Asian counterparts. While Sensex closed 222 points higher at 30,602, Nifty ended 67 points in the green at 8,992.

Earlier, domestic equity bourses opened lower, tracking losses in Asian counterparts amid dismal US economic data and poor start of quarterly earnings' season. However, markets turned bullish on the trend reversal in SGX Nifty and a higher opening in European indices.

Domestic equity markets have factored in the lockdown-induced economic damage and continue taking cues from the trend worldwide, experts said.

With the start of March quarterly earnings' season, the overseas trend was mixed, as investors keenly awaited company-wise performance since the coronavirus outbreak and the financial damage arising out of the same.

European indices opened positive today, with CAC and DAX and FTSE trading above 1%. In Asian counterparts, Shanghai, SGX Nifty, Strait Times were trading 1% higher, while Kospi was flat. Nikkei was down 1.3%, with Hang Seng and Taiwan index trading marginally lower.

IT stocks fell as earnings season started with Wipro reporting weak earnings for the March quarter. The BSE IT index was the worst hit, falling over 2%.

Meanwhile, rupee opened at an all-time low of 76.80 and slipped further to end at a record low of 76.86 against the dollar today.

On the near-term market outlook, Ajit Mishra, VP - Research, Religare Broking said,"It would be difficult for markets to maintain the positive bias for long especially when the domestic factors are pointing otherwise. We suggest continuing with a hedged approach and maintaining a few shorts also. While the defensives such as pharma and FMCG are likely to do well, stocks from the banking, auto and metal space may see selling pressure at higher levels."

Share Market Update: Sensex ends 222 points higher, Nifty at 8,992; NTPC, Vedanta, Hindalco top performers

Gold gains as weak economic data heighten recession worries

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